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www.apcplc.com
Sales platform built for growth
September 2017
Design, specification and distribution of specialist electronic components, products and systems
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Our product and application focus today
Aerospace | Broadcast | Commercial Real Estate | Counter-IED Data Centres | Defence | Education | Facilities Management
Finance | Healthcare | Manufacturing | Military | Oil and Gas | Retail Space | Systems Integrators | Telecommunications | Transport
Our strategy for growth
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Growth by signing new proven technology partners:
• Three new signings in FY 2017 Q4 already
• Robust pipeline of other target technologies
Increased revenue through our established & growth technologies:
• Re-organised and incentivised sales teams, hunters not order takers
• £16m of orders taken in 2017 (i.e. future orders are greater than billings pointing to growth)
• Growth technologies: compliance driven (eg time synchronisation) or market driven (eg lighting solutions)
Sales growth through bolt on acquisitions
• Targeting established companies with T/O £1M+ that can provide additional revenue and bank of existing customers
Restructure debt with ABN / Other
• £3.3m of debt is costing 10% plus pa
• Restructure to £4m at lower cost improving PBT and freeing funds for investment in growth£
Growth through incentivised sales teams
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Marketing:Market, customer and competitor research. Clearly defined plan of campaigns to align with sales objectives
Specialist business teamsSpecific technical expertise | In-depth industry and
product knowledge | Incentivised sales teams
Account managers
Experiencedteam leader
Product managers
Group Support for Sales and Marketing Execution
Internal sales:Office-based team receive all incoming calls and respond promptly to quotations and order placements
Post sale processing:Order management, compliance with specification and standards. Import, storage and onward logistics
A proven track record of growth in targeted technologies:
Top 15 technology partners in 2017 – consistent growth (16% in FY)
£0
£1,000,000
£2,000,000
£3,000,000
£4,000,000
£5,000,000
£6,000,000
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£10,000,000
2010 2011 2012 2013 2014 2015 2016 2017
Growth through established technologies
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Key Hi-Rel Partner Case Study:
• Late in 2006 APC was approached by a leading manufacturer of electronic components for military and aerospace applications.
• The manufacturer’s UK sales were flat and short term outlook was a decline in sales.
• The number of new project engagements had fallen and little feedback was available.
• APC was appointed in 2007 and began a detailed promotional programme to increase sales.
AnnualBookingsValueGrowth
APC doubled the order intake in 3 years and achieved a 4x
increase in 8 years
2017 - A record year for APC Hi-Rel
• Team reinvigorated and incentivised – entering 2018 with double the order book of 2017• Record bookings of £7.1m in the year • Billings up by 31% and bookings by 38% in 2017
The Background:
• APC has been working with a leading German manufacturer of specialist systems for telecoms, broadcast, finance and power sectors for over a decade.
• In 2014 new legislation was introduced within the finance sector that required the use of this technology to meet compliance.
• APC undertook a year-long targeted campaign including events, webinars, white papers, email marketing and a focussed telesales campaign using a specialist technical telesales company.
• Evolving technologies within the broadcast sector have lead to an increase in the requirement for our product, providing our next growth focus.
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Increased revenue through growth technologies
Over a 4 year period total sales increased by 50%, with a 65%
increase between 2016 to 2017. Compliance driven sales to the
finance sector grew by 129% between 2016 to 2017.
2017 - A record year for APC Time
• Team targeted on specific technology with market compliance and digitalisation growth drivers • Bookings of £1.2m in the year • Billings up by 65% and bookings up by 74% in 2017
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2010 2011 2012 2013 2014 2015 2016 2017
APC Time Annual Revenue
Increased revenue through growth technologies
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Refocused Service:
• Our lighting division has refocused their activities on offering turnkey solutions for FM companies and commercial real estate organisations who manage multiple properties across a national spread.
• A year long strategy to achieve preferred supplier status with leading FM companies has resulted in the signing of preferred supplier agreements (PSA) with 3 of the largest global real estate services firms.
• PSAs are in progress with another two market-leading FM companies.
APC lighting has a substantial pipeline at advanced quote
negotiation stage with 12 FM / property management companies
2017 – Building a bespoke lighting solutions business
• Team targeted on specific solution to a specific set of customers • New relationships built with European suppliers
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£500,000
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PSA 1 PSA 2 PSA 3
FY 2017 Billed and Quotes in Progress
Billed
Quoted
Trading Statement - Results to 31 August 2017
• The unaudited full year results to 31 August 2017 are expected to show revenue of £15.6m (2016: £17.9m), gross profit of £5.5m (2016: £6.4m), an operating profit before interest, amortisation, depreciation and exceptional costs of £0.8m (2016: £0.3m) and a profit before tax (“PBT”) in the region of £0.2m.
• This will be the Group’s first PBT since the year ended August 2014.
• These results reflect the commitment of the Board to deliver a profitable business and to concentrate on activities where the Group can create value and upon which APC can grow.
• Net debt at the end of the year is expected to be £3.1m (2016: £3.2m) of which £2.5m (2016: £2.7m) related to amounts owed under the Group’s £6m invoice finance facility with ABN Commercial Finance.
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Our pedigree in specialist electronics
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1982
APC is incorporated as a distributor of high reliability electronic components.
1996
APC lists on London Stock Exchange.
UK wide offices:
Present day
UK wide coverage:Rochester, Kent (HQ)Central LondonNettleham, Lincolnshire
• Regional field sales
70 Employees42 customer facing positionsProduct Managers, Technical Sales, Internal Sales, Sales Administration
2006 to 2016
APC plc acquires:• Hero Electronics (2006)• Contech Electronics (2008)• Novacom Microwaves (2008)• Minimise Limited (2013)
TurnoverFY 2017 revenue c. £16M
www.apcplc.com© APC Technology Group plc. Copying, distributing, or any other unauthorised use of the content contained within this document, without the recreating express written consent of APC Technology Group plc, is strictly prohibited.
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